Q1 2018 presentation Oslo, 25 May 2018 B2Holding status update Q1 - PowerPoint PPT Presentation

Q1 2018 presentation Oslo, 25 May 2018

B2Holding status update Q1 2018 Overview All-time high gross cash collection of NOK 775m up 35% (NOK 575m in Q1 2017) Cash EBITDA increased by 46% to NOK 581m (NOK 399m in Q1 2017) Operating profit increased by 53% to NOK 326m (NOK 213m in Q1 2017) after record strong operations Financial High portfolio acquisition volume of NOK 1,485m, 337% increase from Q1 2017 (NOK 340m) developments Successfully completed equity issue of NOK 748m in Q1 Increased RCF with EUR 150m and successfully placed EUR 200m bond in Q2 Solid investment capacity NOK 4.1bn Two new markets Operational- - Acquisition of Group NAAC, one of the leading players within debt purchase and servicing in France and organisational - Small servicing platform in Portugal added in Q2 2018 through Verifica developments B2H now has platforms in 23 countries and portfolios in 19 countries | 2

A leading pan-European debt purchaser Poland Northern Europe 18 % Poland Finland Estonia Central Europe Sweden 27 % 26 % Latvia Croatia Lithuania NE Slovenia Denmark Serbia P Norway Czech Rep. Lithuania WE B&H CE SEE Montenegro Hungary Western Europe 9 % Southeastern 20 % France Europe 1 Italy Romania 23 19 Spain Greece Platforms Countries with portfolios Portugal Cyprus 18.1bn 2,204 Romania Bulgaria Total ERC (NOK) 1 Employees (FTEs) 1) Split and total ERC includes ERC attributable to JV with EOS in Romania | 3

Strong financial performance Total ERC and portfolio acquisitions Total revenues NOKm NOKm 646 622 340 1,120 702 1,485 1,951 8% 8% 9% 1% 6% 3% 519 482 4% 6% 459 6% 3% 6% 6% 5% 3% 5% 18,116 82% 82% 15,264 85% 85% 86% 12,191 11,881 9,852 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Purchased loan portfolios Profit from JV Total ERC Portfolio acquisitions External collections Other Cash EBITDA EBITDA NOKm NOKm | 4

Strict code of conduct across all geographies Significant Clearly defined Collection activity Complaints countries ranked Data protection statute of Collection activity recording and management Current / past Regulatory 1 by ERC Specific license system in place limitation limitations monitoring procedure in place litigation inspections / fines Not required      2 None None Croatia Comply with CNB regulation       3 None None Poland Monitored but not      None None Finland yet recorded Monitored but not      None None Sweden yet recorded       None None Romania Recording in      None None Italy implementation       None None Bulgaria Monitored but not      4 One, now closed None Latvia yet recorded       None None Greece One, now closed Not required      None with fine of EUR Spain Regulated by Data 2,400 Protection Authority 1) Restricts frequency of client contacts as well as limits hours of the day clients can be contacted as well as on weekends 2) Croatian National Bank | 5 3) Debt collection does not require license. Company holds license for receivables management, securitisation fund management and consumer lending 4) Related to credit information service provided in Latvia. Non-monetary claim and no regulatory authority involved

Financial performance | 6

Another record quarter across the board Financial summary Comments 2018 2017 % Record-high portfolio purchase NOKm Q1 Q1 change volume for first quarter Total operating revenues 1) 646 459 41 % EBITDA 338 221 53 % Profit margin remains high in Q1 Operating profit (EBIT) 326 213 53 % at 50% Profit margin 50 % 46 % Another record quarter in terms Cash Revenue 889 637 39 % of cash collection, EBITDA, cash Cash EBITDA 581 399 46 % EBITDA and EBIT Profit for the period after tax 152 104 46 % Earnings per share (EPS) NAAC will be included in P&L 0.41 0.28 46 % from 1 st of April Cash flow from operating activities 457 295 55 % Operating cash flow per share 1.22 0.80 53 % Portfolio acquisitions 1,485 340 337 % Cash collection from portfolios 775 575 35 % ERC (at end of month) 2) 18,116 9,852 84 % 1) Figures and alternative performance measures (APMs) have been restated due to change in classification of “Profit from shares and participation in associated companies and joint ventures”, see note 1 in the financial report for further information. | 7 2)Including the Group’s share of portfolio acquired and held in joint venture

Financial highlights: Income statement Income statement Comments 2018 2017 2017 NOKm Gross cash collection in line with Q1 Q1 audited curves and a minor revaluation Revenue from purchased loan portfolios 532 397 1,757 Profit from shares, associated companies and JVs 9 13 70 of both secured and unsecured Other operating revenues 105 50 256 Total operating revenues 646 459 2,083 Cost to collect reduced to 25% in Q1 2018 (31% in Q1 2017) due External costs of services provided -74 -85 -286 Personnel costs -153 -94 -490 to improved efficiency in Other operating expenses -81 -59 -287 operations and economies of Depreciation and amortisation -12 -8 -36 scale. Some quarterly variations Operating profit (EBIT) 326 213 984 expected Financial income 1 0 3 Financial expenses -126 -74 -358 Record-high EBITDA, cash Net exchange gain (loss) 1 -1 18 EBITDA and EBIT Net financial items -124 -75 -337 Higher interest costs due to Profit before tax 202 138 648 higher drawn amount Income tax expense -51 -35 -166 Net profit 152 104 481 Non-recurring items (net of tax) 0 0 0 Adjusted net profit 152 104 481 Cash revenue 889 637 2,878 Cash EBITDA 581 399 1,815 EBITDA 338 221 1,020 | 8

Focus on cost and economies of scale – cost of collect trending down Operational costs split Total operational costs per quarter NOKm NOKm Personnel costs 155 153 311 308 123 119 Personnel 94 costs at Q4 level - Verifica included for the full quarter 258 256 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 238 External costs 85 74 67 69 65 Higher legal costs due to high portfolio purchases Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Other operating costs 87 81 70 69 59 Include costs related GDPR, new project related costs Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 | 9

Balance sheet Balance sheet Comments 2018 2017 2017 NOKm Increase in purchased loan Q1 Q1 audited portfolios of 106% LTM 213 201 Tangible and intangible assets 93 730 522 Goodwill 409 Purchased loan portfolios 10,418 5,051 8,732 Goodwill in connection with Other long-term financial assets 524 519 618 NAAC acquisition included in BS 64 66 Deferred tax asset 73 11,949 10,139 Equity ratio 30% Total non-current assets 6,145 Other short-term assets 255 132 207 Investment capacity NOK 4.1b Cash & short-term deposits 569 223 452 Total current assets 824 354 659 Net interest-bearing debt NOK 6,855m Total assets 12,773 6,499 10,797 Covenant headroom for future Total equity 3,875 2,620 3,148 growth 6,457 5,739 Long-term interest-bearing loans and borrowings 3,396 Deferred tax liabilities 159 56 96 Other long-term liabilities 170 77 70 Total non-current liabilities 6,786 3,529 5,905 Short-term interest-bearing loans and borrowings 963 989 Accounts and other payables 804 82 267 49 57 Income tax payable 83 297 432 Other current liabilities (incl. bank overdraft) 185 Total current liabilities 2,113 350 1,744 Total equity and liabilities 12,773 6,499 10,797 | 10

Record-high purchase volume: NOK 1.48bn in Q1 Portfolio purchase volumes Comments NOKm Record strong volume for a first quarter 2014 2015 2016 2017 2018 - 337% increase compared to Q1 2017 - EUR 120 previously announced to be closed in Q2 Portfolios acquired in all major markets, 98% unsecured 1 951 Portfolio of EUR 90m acquired in Greece - Co-investor interest in the Greek portfolio 1 485 Key details portfolio purchase volume 1 120 1 054 Geography distribution Distribution by type 827 Secured 702 672 2 % NE 18% 448 340 318 Poland 304 253 259 255 6% NOK NOK 98 64 1,485m 1,485m 39 58% SEE 17% CE Q1 Q2 Q3 Q4 1% 98 % Unsecured WE | 11